UK Begins Stablecoin Regulation Consultation in November
- UK launches stablecoin regulation consultation on November 10, 2025, aligning with US standards.
- Consultation led by the Bank of England and FCA.
- Impact expected on GBP and USD stablecoins operating in the UK.
The UK is set to launch a stablecoin regulation consultation on November 10, 2025, led by the Bank of England and Financial Conduct Authority, as reported.
This initiative seeks regulatory alignment with the US, highlighting the UK’s competitive stance in the global crypto market without immediate market reactions.
The UK will commence a stablecoin regulation consultation on November 10, 2025, spearheaded by the Bank of England and the Financial Conduct Authority.
This move aligns UK standards with the US, impacting GBP/USD stablecoins and fostering digital asset industry competitiveness.
UK Sets Stablecoin Consultation to Match US Standards
The UK, driven by the Bank of England and the Financial Conduct Authority, will start a consultation on stablecoin regulation. This aims to create a regime paralleling US standards.
The Bank of England (BoE), led by Governor Andrew Bailey, and the Financial Conduct Authority (FCA) are the key bodies involved in the initiative.
GBP and USD Stablecoins to Face New UK Rules
The new regulations will significantly affect GBP-backed stablecoins and some USD-denominated ones in the UK. Anticipations include altered operations for market participants. A quote from Sarah Breeden, Deputy Governor, Bank of England, asserts the significance: “I’ve been talking to the Federal Reserve… The regulators over there and our finance ministries are working together,” emphasizing the importance of US-UK regulatory alignment.
I’ve been talking to the Federal Reserve… The regulators over there and our finance ministries are working together.
These changes have political and business implications, potentially boosting the UK’s digital asset industry, as noted by the industry trade group CryptoUK highlighting that “The move would bolster confidence in the UK’s digital asset industry and is important for UK competitiveness.”
US Model Inspires UK’s Regulatory Path for Stability
The UK’s framework mirrors the US model, which enforces reserve holdings and redemption protocols for stablecoins, ensuring financial stability.
Similar regulatory approaches in the European Union suggest the UK’s steps may lead to expanded digital asset market growth if aligned correctly.
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